UNIT VI: Economic UNIT VI: Economic GeographyGeography

Core:

-wealthy-industrialized-MDC’s

U.S., W. Europe, Japan

Semi-periphery:

-developing-newly industrializing (NIC)

China, India, Mexico, Brazil, Russia

Periphery:

-poor-unindustrialized-LDC’s-the most exploited

Core-Periphery ModelCore-Periphery Model

Types of Industrial ProductionFordist ProductionFordist Production:: assembly-line industrial production for mass consumption (post-WW I)

““Post-FordistPost-Fordist”” Flexible Production Flexible Production:: “post-Fordist” multi-national producers can move production sites through outsourcing (post-WW II)

-role of technology?

Textiles Production:Liverpool and Manchester

Iron Production:Birmingham

Coal Mining:Newcastle

U.S. Manufacturing Regions

““RUST BELTRUST BELT””

Labor costs?outsourcingoutsourcing: to relocate from higher-cost locations to lower cost

– Why make Nike shoes in Vietnam?3 cents per shoe…

WHO “outsources”?

multinational (or transnational) corporations: research, factories, & sell products globally

deindustrialization:manufacturing jobs shifting from MDC’s to developing countries

Abandoned street in Liverpool, England

The former Gautier rolling mills of Bethlehem Steel Corp. in

Johnstown, PA

global division of labor:

labor pool drawn around the world (cheaper resources & labor in the periphery countries)

just-in-time delivery:

short-term production & quick shipping

Supranational Organizations:

3 or more states form an alliance for:

-military (NATO)-economic trade (E.U., NAFTA, WTO)-political (U.N.)

Regional Scale – The European Union

Location Theories

Locational Theories: Locational Theories: predicting where business locates

1. Weber’s Model2. Hotelling’s Model

WeberWeber’’s Least-Cost Theorys Least-Cost Theory::

• transport costs (“optimum point of production”)

• labor costs

Hotelling’s Model

(“locational interdependence”):

location dependent on other businesses

agglomeration economies: clustering of firms

- Silicon Valley in California (“technopoletechnopole”)- Bangalore, India (Bollywood)- maquiladoras on the Mexican border (over 3,000 factories)- Export Processing Zones (EPZs); Special Economic Zones (SEZ’s)

Concepts of Concepts of DevelopmentDevelopment

A. Describing development

1. world of rich & poor

outdated names: 1st, 2nd, 3rd, or 4th World

today: Developed---Developing---Underdeveloped

or MDC---NIC---LDC

geographic description: “North/South line”

The Brandt Line: distribution of MDCs & LDCs

Newly Industrialized “Pacific Rim”

• East Asia• South East Asia

Major Manufacturing Regions of East

Asia

Four Asian Tigers

South KoreaHong KongTaiwanSingapore

    Hong Kong     South Korea     Singapore     Taiwan

“Measuring’ Development

Economic: ““formal economyformal economy””:: legal economy (measured by GDP)““informal economyinformal economy””:: the illegal or uncounted economy

Noneconomic:– Education– Public Services (access to clean water; sewage)– Health Services (doctors per person)

Rostow’s Economic Modernization Theory

*assumes countries go through stages of development

subsistence farming

early industrializing; LDC

rapid industrialization

MDC’s